Salt Financial and MSCI Announce Strategic Collaboration to Develop Volatility-Controlled Index Solutions

Rhea-AI Summary

Salt Financial has announced a new collaboration with MSCI to develop risk-controlled index solutions aimed at insurance companies. This strategic partnership leverages MSCI's 50 years of investment research experience alongside Salt's innovative truVol® Risk Control Engine (RCE). The objective is to create differentiated risk control indexes for the indexed annuity market, enhancing volatility targeting accuracy through historical intraday data. The collaboration aims to meet the growing demand for retirement solutions amid an aging population and market uncertainties.

Positive

• Collaboration with MSCI enhances Salt's index solutions, aiming for innovation in the retirement market.
• Utilization of truVol RCE may increase accuracy in volatility targeting for risk control indexes.

Negative

• None.

GREENWICH, Conn., Feb. 15, 2023 /PRNewswire/ -- Salt Financial today announced a collaboration with MSCI Inc. (NYSE: MSCI) to create risk-controlled index solutions for insurance companies. The cooperation is expected to provide insurance companies and their clients with a new way to leverage MSCI's 50 years of expertise in investment research and index construction using Salt's patent-pending truVol® Risk Control Engine (RCE).

Salt Financial and MSCI Announce Strategic Collaboration

The use of historical intraday data for volatility forecasting in truVol is designed to help increase volatility targeting accuracy and responsiveness for risk control indexes. Combining MSCI's expertise in the broad spectrum of index construction and truVol's technology, the parties intend to create highly differentiated risk control indexes for the indexed annuity market. 

"MSCI is recognized globally as a premier research and index provider, with vast expertise in many areas across the investment life cycle. We are excited to collaborate with such a distinguished firm," said Tony Barchetto, CEO, Salt Financial.

"This collaboration combines MSCI's industry-leading index franchise in global equity, factors, ESG and thematics, with Salt's next-generation risk management solutions using high frequency data. Our common ambition is to deliver innovative index solutions designed to address investors' needs and investment targets," said Stephane Mattatia, Global Head of Thematic Indexes and Derivatives Licensing at MSCI.

Retirement solutions are in great demand, fueled by an aging population, volatile and uncertain markets, and investors' desire for principal-protected products. MSCI will develop index solutions powered by Salt's truVol RCE aimed at the growing fixed index annuity market.

About Salt Financial

Salt Financial LLC is a leading provider of index solutions and risk analytics, powered by the patent-pending truVol® Risk Control Engine (RCE). We leverage the rich information contained in intraday prices to better estimate volatility to develop index-based investment products for insurance carriers, investment banks, asset managers, and ETF issuers. Salt is committed to collaborating with industry leaders to empower the pursuit of financial outperformance for investors worldwide. For more information, please visit www.saltfinancial.com. 

View original content:https://www.prnewswire.com/news-releases/salt-financial-and-msci-announce-strategic-collaboration-to-develop-volatility-controlled-index-solutions-301746612.html

SOURCE Salt Financial

FAQ

What is the collaboration between Salt Financial and MSCI about?

Salt Financial and MSCI are collaborating to create risk-controlled index solutions for insurance companies, leveraging expertise in investment research and index construction.

What technology will be used in the new index solutions by MSCI?

The new index solutions will utilize Salt's patent-pending truVol® Risk Control Engine (RCE) for volatility forecasting.

When was the collaboration between Salt Financial and MSCI announced?

The collaboration was announced on February 15, 2023.

How does the collaboration address market demand?

The collaboration aims to meet the rising demand for retirement solutions amidst an aging population and volatile markets.